Non registered margin account - Canadian moving to US

[orion216]

Hi,

Newbie Canadian moving to US for potentially long-term (>3y) work here, with TN.

I've read from many articles that liquidating investment account is recommended before leaving Canada.

In particular, TFSA should be liquidated totally.

I also have a non-registered margin account with Interactive broker. Let's say there're 5 US stocks in portfolio, S1-S2 is at loss totaled -$14k, S3-S4-S5 is making profit $20k.

1. Should I liquidate totally the margin account, including the loss ? I'm thinking of only selling the gained ones (S3to5) and pay Canadian tax, keeping the losing equities (S1to2) until they get back up. But wondering if it's worth the paperwork hassle. Should I just bite it and lock in both the loss and gain now ?

My TFSA has the same situation, but locking in a few thousand $ of loss vs paperwork, I'd prefer just simply liquidate it, after seeing horror stories about declaring TFSA account in US.

2. What's the complication of keeping Canadian margin account and sell later ? Will I be double taxed ?

3. Can I somehow transfer the holdings (at least, the losing equities) into a US interactive broker margin account ? There're only US stocks in my portfolio. I won't be able to open a trading account in US before actually being there (I think), so there will be a period that the stocks still live in the Canadian account. I have been able to trade with CA IBKR app when visiting US, so I guess there is some grace period before IB detects "you're in US long enough, we'll block you from trading with CA account". I can use that grace period where I have both CA and US account to perform the transfer. If that's possible, what's the implication on tax declaration ? In that grace period I still hold stocks in CA account.

Thanks.

[nelsona]

1, It would make sense -- if you are going to cash your winners -- to cash your losers too.

2. You wont be double taxed, but as you know, if you hold until leaving there will be CDn departure tax, and then US tax based on future gains.

3. Sure you can transfer, but that still gives you departure tax in canada. You will ask your new company to request the stocks from the old. You shouldn;t trade after leaving.